,,ii #aacth ,,congress #b;d ,session ,s4 #bdhi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #ah1 #bjad ,mr4 ,walsh introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to ensure that sufficient funding is made available for the ,highway ,trust ,fund1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,american ,jobs for ,american ,infrastructure ,act4 7b7 ,table of contents ,the table of contents of this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,,title ,i--,highway ,trust ,fund ,sec4 #aja4 ,ensuring sufficient funding for the ,highway ,trust ,fund4 ,sec4 #ajb4 ,sense of ,congress regarding the ,surface ,transportation reauthorization4 ,,title ,,ii--,water infrastructure ,sec4 #bja4 ,reclamation ,water ,infrastructure ,fund4 ,sec4 #bjb4 ,sense of ,congress regarding direction of ,secretary of the ,interior4 ,,title ,,iii--,energy infrastructure ,sec4 #cja4 ,energy ,upgrade and ,retrofit ,infrastructure ,fund4 ,sec4 #cjb4 ,sense of ,congress regarding direction of ,secretary of ,energy4 ,,title ,,iv--,taxation of foreign income ,sec4 #dja4 ,allocation of expenses and taxes on basis of repatriation of foreign income4 ,sec4 #djb4 ,modifications to rules relating to inverted corporations4 ,,title ,v--,deficit ,reduction ,sec4 #eja4 ,deficit reduction4 ,i ,highway ,trust ,fund #aja4 ,ensuring sufficient funding for the ,highway ,trust ,fund 7a7 ,in general ,section #iejc7;f7 of the ,internal ,revenue ,code of #aihf is amended by redesignating paragraph 7#e7 as paragraph 7#f7 and by inserting after paragraph 7#d7 the following new paragraph3 7#e7 ,ensuring adequate balances in ,highway ,account and ,mass ,transit ,account ,for the period of fiscal years #bjad through #bjah1 out of money in the ,treasury not otherwise appropriated1 there are hereby appropriated-- 7,a7 in the case of the ,highway ,account 7as defined in subsection 7e77#e77;,b77 in the ,highway ,trust ,fund1 such amounts as are determined by the ,secretary to be necessary to ensure that the balance of such account is not less than #d1jjj1jjj1jjj for any quarter during such period1 and 7,b7 in the case of the ,mass ,transit ,account in the ,highway ,trust ,fund1 such amounts as are determined by the ,secretary to be necessary to ensure that the balance of such account is not less than #a1jjj1jjj1jjj for any quarter during such period4 4 7b7 ,effective date ,the amendments made by this section shall take effect on the date of the enactment of this ,act4 #ajb4 ,sense of ,congress regarding the ,surface ,transportation reauthorization ,it is the sense of ,congress that ,congress should provide annual inflation increases for the ,federal ,lands ,access ,program1 the ,federal ,lands ,transportation ,program1 and the ,tribal ,transportation ,program in the next ,surface ,transportation reauthorization4 ,,ii ,water infrastructure #bja4 ,reclamation ,water ,infrastructure ,fund 7a7 ,establishment of ,fund ,there is established in the ,treasury a fund to be known as the ,reclamation ,water ,infrastructure ,fund 7referred to in this section as the ,fund71 to be administered by the ,secretary of the ,interior1 to be available without fiscal year limitation and not subject to appropriation1 for use in accordance with subsection 7e74 7b7 ,deposits ,for the period of fiscal years #bjae through #bjcf1 the ,secretary of the ,treasury shall deposit in the ,fund-- 7#a7 of the revenues that would otherwise be deposited for each fiscal year in the reclamation fund established by the first section of the ,act of ,june #ag1 #aijb 7#cb ,stat4 #chh1 chapter #ajic71 #aej1jjj1jjj2 and 7#b7 out of amounts in the ,treasury not otherwise obligated1 #f1ejj1jjj1jjj4 7c7 ,investment 7#a7 ,in general ,the ,secretary of the ,treasury shall invest such portion of the ,fund as is not1 in the judgment of the ,secretary1 required to meet current withdrawals4 7#b7 ,credits to ,fund ,the interest on1 and the proceeds from the sale or redemption of1 any obligations held in the ,fund shall be credited to1 and form a part of1 the ,fund4 7d7 ,prohibition ,amounts in the ,fund may not be made available for any purpose other than a purpose described in subsection 7e74 7e7 ,use of funds ,the ,secretary of the ,interior may use amounts in the ,fund for the following purposes3 7#a7 ,rural water projects ,to complete construction 7but not including operation or maintenance7 of rural water projects-- 7,a7 that were authorized to be carried out by the ,secretary on or before the date of enactment of this ,act2 or 7,b7 for which-- 7i7 pursuant to section #ajf7;e7 of the ,rural ,water ,supply ,act of #bjjf 7#dc ,u4,s4,c4 #bdje7;e771 a feasibility study has been submitted to the ,secretary by not later than ,december #ca1 #bjae2 and 7ii7 an ,act enacted after the date of enactment of this ,act authorizes construction4 7#b7 ,deferred maintenance of ,indian irrigation projects ,to address deferred maintenance needs of ,indian irrigation projects 7including maintenance1 repair1 and replacement activities for any structures1 facilities1 equipment1 or vehicles used in connection with the operation of those projects7 that1 on the date of enactment of this ,act-- 7,a7 are owned by the ,federal ,government1 as listed in the ,federal inventory required by ,executive ,order #accbg 7#dj ,u4,s4,c4 #aba note2 relating to ,federal real property asset management72 7,b7 are managed by the ,bureau of ,indian ,affairs 7including projects managed under contracts or compacts pursuant to the ,indian ,self-,determination and ,education ,assistance ,act 7#be ,u4,s4,c4 #dej et seq4772 and 7,c7 have deferred maintenance documented by the ,bureau of ,indian ,affairs4 7#c7 ,indian reserved water rights settlements ,to provide amounts to complete construction1 planning1 and design of any project1 or to implement any provision of ,federal law1 that-- 7,a7 settles or otherwise resolves1 in whole or in part1 litigation involving the ,united ,states and the rights of one or more federally recognized ,indian tribes to access1 use1 or manage water resources2 or 7,b7 implements an agreement approved by ,congress pursuant to which one or more federally recognized ,indian tribes agree to some limitation on the exercise of rights or claims to access1 use1 or manage water resources4 7f7 ,annual reports 7#a7 ,in general ,not later than #fj days after the end of each fiscal year beginning with fiscal year #bjae1 the ,secretary of the ,interior shall submit to the ,committee on ,appropriations of the ,house of ,representatives1 the ,committee on ,appropriations of the ,senate1 and authorizing committees a report on the operation of the ,fund during the fiscal year4 7#b7 ,contents ,each report shall include1 for the fiscal year covered by the report1 the following3 7,a7 ,a statement of the amounts deposited into the ,fund4 7,b7 ,a description of the expenditures made from the ,fund for the fiscal year1 including the purpose of the expenditures4 7,c7 ,recommendations for additional authorities to fulfill the purpose of the ,fund4 7,d7 ,a statement of the balance remaining in the ,fund at the end of the fiscal year4 #bjb4 ,sense of ,congress regarding direction of ,secretary of the ,interior ,it is the sense of ,congress that ,congress should provide direction to the ,secretary of the ,interior with respect to expenditures under this title1 including-- 7#a7 requirements under the annual budget submission of the ,president2 7#b7 annual reporting requirements describing final allocations2 7#c7 programmatic goals to carry out this title2 and 7#d7 funding prioritization criteria to serve as a methodology for distributing funds4 ,,iii ,energy infrastructure #cja4 ,energy ,upgrade and ,retrofit ,infrastructure ,fund 7a7 ,establishment of ,fund ,there is established in the ,treasury a fund to be known as the ,energy ,upgrade and ,retrofit ,infrastructure ,fund 7referred to in this section as the ,fund71 to be administered by the ,secretary of ,energy1 to be available without fiscal year limitation and not subject to appropriation1 for use in accordance with subsection 7e74 7b7 ,deposits ,for the period of fiscal years #bjae through #bjcd1 the ,secretary of the ,treasury shall deposit in the ,fund1 out of amounts in the ,treasury not otherwise obligated1 #h1jjj1jjj1jjj4 7c7 ,investment 7#a7 ,in general ,the ,secretary of the ,treasury shall invest such portion of the ,fund as is not1 in the judgment of the ,secretary1 required to meet current withdrawals4 7#b7 ,credits to ,fund ,the interest on1 and the proceeds from the sale or redemption of1 any obligations held in the ,fund shall be credited to1 and form a part of1 the ,fund4 7d7 ,prohibition ,amounts in the ,fund may not be made available for any purpose other than a purpose described in subsection 7e74 7e7 ,use of funds 7#a7 ,in general ,of amounts in the ,fund1 the ,secretary of ,energy may use1 in accordance with this title1 such sums as are necessary to provide grants1 loans1 loan guarantees1 or other credit financing instruments1 including any such instruments under the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #aehja et seq471 to support novel and innovative technologies that-- 7,a7 capture or prevent carbon dioxide emissions from carbon-based fuels2 7,b7 enable the beneficial use of carbon dioxide and other greenhouse gases2 7,c7 enable the long-term storage of carbon dioxide2 7,d7 reduce net carbon emissions from the fleet of electric generation units in a ,state or region of the bulk electric system2 or 7,e7 construct1 upgrade1 or retrofit electric transmission property that serves the public interest by facilitating the deployment of low-carbon energy sources while ensuring reliability and reducing congestion4 7#b7 ,prioritization ,in carrying out paragraph 7#a71 the ,secretary of ,energy shall give priority to projects that upgrade or retrofit existing infrastructure for the generation and transmission of electric power4 7#c7 ,commercial-scale coal technology 7,a7 ,expenditure ,not less than #fj percent of amounts expended under this subsection shall be for commercial-scale1 coal-fired electric generation units-- 7i7 designed to generate and sell electric power directly to consumers or for resale2 and 7ii7 with a carbon dioxide capture and storage system having a useful life of not fewer than #ae years4 7,b7 ,eligible projects ,eligible projects under this paragraph include projects for-- 7i7 the construction of new coal-fired electric generation units2 7ii7 the retrofitting of existing coal-fired electric generation units2 or 7iii7 the construction of carbon dioxide transmission pipelines to transport carbon dioxide from carbon capture and sequestration facilities to-- 7,i7 sequestration sites2 or 7,,ii7 sites at which the carbon dioxide will be used for hydrocarbon recovery4 7f7 ,annual reports 7#a7 ,in general ,not later than #fj days after the end of each fiscal year beginning with fiscal year #bjae1 the ,secretary of ,energy shall submit to the ,committee on ,appropriations of the ,house of ,representatives1 the ,committee on ,appropriations of the ,senate1 and authorizing committees a report on the operation of the ,fund during the fiscal year4 7#b7 ,contents ,each report shall include1 for the fiscal year covered by the report1 the following3 7,a7 ,a statement of the amounts deposited into the ,fund4 7,b7 ,a description of the expenditures made from the ,fund for the fiscal year1 including the purpose of the expenditures4 7,c7 ,recommendations for additional authorities to fulfill the purpose of the ,fund4 7,d7 ,a statement of the balance remaining in the ,fund at the end of the fiscal year4 #cjb4 ,sense of ,congress regarding direction of ,secretary of ,energy ,it is the sense of ,congress that ,congress should provide direction to the ,secretary of ,energy with respect to effects of expenditures under this title on other applicable ,federal programs and laws1 including-- 7#a7 provisions of the ,internal ,revenue ,code of #aihf that affect electric power generation and transmission2 7#b7 existing standards with respect to the percentage of carbon dioxide required to be captured and stored by projects that receive ,federal funds2 and 7#c7 liability standards with respect to the long-term storage of carbon dioxide4 ,,iv ,taxation of foreign income #dja4 ,allocation of expenses and taxes on basis of repatriation of foreign income 7a7 ,in general ,part ,,iii of subchapter ,n of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after subpart ,g the following new subpart3 ,h ,special ,rules for ,allocation of ,foreign-,related ,deductions ,sec4 #ige4 ,deductions allocated to deferred foreign income may not offset ,united ,states source income4 #ige4 ,deductions allocated to deferred foreign income may not offset ,united ,states source income 7a7 ,current year deductions ,for purposes of this chapter1 foreign-related deductions for any taxable year-- 7#a7 shall be taken into account for such taxable year only to the extent that such deductions are allocable to currently-taxed foreign income1 and 7#b7 to the extent not so allowed1 shall be taken into account in subsequent taxable years as provided in subsection 7b74 ,foreign-related deductions shall be allocated to currently-taxed foreign income in the same proportion which currently-taxed foreign income bears to the sum of currently-taxed foreign income and deferred foreign income4 7b7 ,deductions related to repatriated deferred foreign income 7#a7 ,in general ,if there is repatriated foreign income for a taxable year1 the portion of the previously deferred deductions allocated to the repatriated foreign income shall be taken into account for the taxable year as a deduction allocated to income from sources outside the ,united ,states4 ,any such amount shall not be included in foreign-related deductions for purposes of applying subsection 7a7 to such taxable year4 7#b7 ,portion of previously deferred deductions ,for purposes of paragraph 7#a71 the portion of the previously deferred deductions allocated to repatriated foreign income is-- 7,a7 the amount which bears the same proportion to such deductions1 as 7,b7 the repatriated income bears to the previously deferred foreign income4 7c7 ,definitions and special rule ,for purposes of this section-- 7#a7 ,foreign-related deductions ,the term foreign-related deductions means the total amount of deductions and expenses which would be allocated or apportioned to gross income from sources without the ,united ,states for the taxable year if both the currently-taxed foreign income and deferred foreign income were taken into account4 7#b7 ,currently-taxed foreign income ,the term currently-taxed foreign income means the amount of gross income from sources without the ,united ,states for the taxable year 7determined without regard to repatriated foreign income for such year74 7#c7 ,deferred foreign income ,the term deferred foreign income means the excess of-- 7,a7 the amount that would be includible in gross income under subpart ,f of this part for the taxable year if-- 7i7 all controlled foreign corporations were treated as one controlled foreign corporation1 and 7ii7 all earnings and profits of all controlled foreign corporations were subpart ,f income 7as defined in section #ieb71 over 7,b7 the sum of-- 7i7 all dividends received during the taxable year from controlled foreign corporations1 plus 7ii7 amounts includible in gross income under section #iea7;a74 7#d7 ,previously deferred foreign income ,the term previously deferred foreign income means the aggregate amount of deferred foreign income for all prior taxable years to which this part applies1 determined as of the beginning of the taxable year1 reduced by the repatriated foreign income for all such prior taxable years4 7#e7 ,repatriated foreign income ,the term repatriated foreign income means the amount included in gross income on account of distributions out of previously deferred foreign income4 7#f7 ,previously deferred deductions ,the term previously deferred deductions means the aggregate amount of foreign-related deductions not taken into account under subsection 7a7 for all prior taxable years 7determined as of the beginning of the taxable year71 reduced by any amounts taken into account under subsection 7b7 for such prior taxable years4 7#g7 ,treatment of certain foreign taxes 7,a7 ,paid by controlled foreign corporation ,section #gh shall not apply for purposes of determining currently-taxed foreign income and deferred foreign income4 7,b7 ,paid by taxpayer ,for purposes of determining currently-taxed foreign income1 gross income from sources without the ,united ,states shall be reduced by the aggregate amount of taxes described in the applicable paragraph of section #ija7;b7 which are paid by the taxpayer 7without regard to sections #ijb and #ifj7 during the taxable year4 7d7 ,application of section ,this section-- 7#a7 shall be applied before subpart ,a1 and 7#b7 shall be applied separately with respect to the categories of income specified in section #ijd7;d77#a74 4 7b7 ,clerical amendment ,the table of subparts for part ,,iii of subpart ,n of chapter #a of such ,code is amended by inserting after the item relating to subpart ,g the following new item3 ,subpart ,h4 ,special ,rules for ,allocation of ,foreign-,related ,deductions 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4 #djb4 ,modifications to rules relating to inverted corporations 7a7 ,in general ,subsection 7b7 of section #ghgd of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7b7 ,inverted corporations treated as domestic corporations 7#a7 ,in general ,notwithstanding section #ggja7;a77#d71 a foreign corporation shall be treated for purposes of this title as a domestic corporation if-- 7,a7 such corporation would be a surrogate foreign corporation if subsection 7a77#b7 were applied by substituting #hj percent for #fj percent1 or 7,b7 such corporation is an inverted domestic corporation4 7#b7 ,inverted domestic corporation ,for purposes of this subsection1 a foreign corporation shall be treated as an inverted domestic corporation if1 pursuant to a plan 7or a series of related transactions7-- 7,a7 the entity completes after ,may #h1 #bjad1 the direct or indirect acquisition of-- 7i7 substantially all of the properties held directly or indirectly by a domestic corporation1 or 7ii7 substantially all of the assets of1 or substantially all of the properties constituting a trade or business of1 a domestic partnership1 and 7,b7 after the acquisition1 either-- 7i7 more than #ej percent of the stock 7by vote or value7 of the entity is held-- 7,i7 in the case of an acquisition with respect to a domestic corporation1 by former shareholders of the domestic corporation by reason of holding stock in the domestic corporation1 or 7,,ii7 in the case of an acquisition with respect to a domestic partnership1 by former partners of the domestic partnership by reason of holding a capital or profits interest in the domestic partnership1 or 7ii7 the management and control of the expanded affiliated group which includes the entity occurs1 directly or indirectly1 primarily within the ,united ,states1 and such expanded affiliated group has significant domestic business activities4 7#c7 ,exception for corporations with substantial business activities in foreign country of organization ,a foreign corporation described in paragraph 7#b7 shall not be treated as an inverted domestic corporation if after the acquisition the expanded affiliated group which includes the entity has substantial business activities in the foreign country in which or under the law of which the entity is created or organized when compared to the total business activities of such expanded affiliated group4 ,for purposes of subsection 7a77#b77;,b77iii7 and the preceding sentence1 the term substantial business activities shall have the meaning given such term under regulations in effect on ,may #h1 #bjad1 except that the ,secretary may issue regulations increasing the threshold percent in any of the tests under such regulations for determining if business activities constitute substantial business activities for purposes of this paragraph4 7#d7 ,management and control ,for purposes of paragraph 7#b77;,b77ii7-- 7,a7 ,in general ,the ,secretary shall prescribe regulations for purposes of determining cases in which the management and control of an expanded affiliated group is to be treated as occurring1 directly or indirectly1 primarily within the ,united ,states4 ,the regulations prescribed under the preceding sentence shall apply to periods after ,may #h1 #bjad4 7,b7 ,executive officers and senior management ,such regulations shall provide that the management and control of an expanded affiliated group shall be treated as occurring1 directly or indirectly1 primarily within the ,united ,states if substantially all of the executive officers and senior management of the expanded affiliated group who exercise day-to-day responsibility for making decisions involving strategic1 financial1 and operational policies of the expanded affiliated group are based or primarily located within the ,united ,states4 ,individuals who in fact exercise such day-to-day responsibilities shall be treated as executive officers and senior management regardless of their title4 7#e7 ,significant domestic business activities ,for purposes of paragraph 7#b77;,b77ii71 an expanded affiliated group has significant domestic business activities if at least #be percent of-- 7,a7 the employees of the group are based in the ,united ,states1 7,b7 the employee compensation incurred by the group is incurred with respect to employees based in the ,united ,states1 7,c7 the assets of the group are located in the ,united ,states1 or 7,d7 the income of the group is derived in the ,united ,states1 determined in the same manner as such determinations are made for purposes of determining substantial business activities under regulations referred to in paragraph 7#c7 as in effect on ,may #h1 #bjad1 but applied by treating all references in such regulations to foreign country and relevant foreign country as references to the ,united ,states4 ,the ,secretary may issue regulations decreasing the threshold percent in any of the tests under such regulations for determining if business activities constitute significant domestic business activities for purposes of this paragraph4 4 7b7 ,conforming amendments 7#a7 ,clause 7i7 of section #ghgd7;a77#b77;,b7 of such ,code is amended by striking after ,march #d1 #bjjc1 and inserting after ,march #d1 #bjjc1 and before ,may #i1 #bjad14 7#b7 ,subsection 7c7 of section #ghgd of such ,code is amended-- 7,a7 in paragraph 7#b7-- 7i7 by striking subsection 7a77#b77;,b77ii7 and inserting subsections 7a77#b77;,b77ii7 and 7b77#b77;,b77i71 and 7ii7 by inserting or 7b77#b77;,a7 after 7a77#b77;,b77i7 in subparagraph 7,b71 7,b7 in paragraph 7#c71 by inserting or 7b77#b77;,b77i71 as the case may be1 after 7a77#b77;,b77ii71 7,c7 in paragraph 7#e71 by striking subsection 7a77#b77;,b77ii7 and inserting subsections 7a77#b77;,b77ii7 and 7b77#b77;,b77i71 and 7,d7 in paragraph 7#f71 by inserting or inverted domestic corporation1 as the case may be1 after surrogate foreign corporation4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years ending after ,may #h1 #bjad4 ,v ,deficit ,reduction #eja4 ,deficit reduction ,for purposes of the amount of any increase in revenue to the ,treasury by reason of the provisions of this ,act and the amendments made by this ,act1 #a1jjj1jjj1jjj of such amount shall be1 at such times and in such manner as determined appropriate by the ,secretary of the ,treasury 7or the ,secretary's delegate71 deposited and credited as general revenue of the ,treasury for the purposes of deficit reduction and shall not be available for obligation4